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Traders on the floor of the New York Stock Exchange looked past the fiscal cliff toward 2013 Monday as the stock market finished the year with solid gains despite a sluggish economy and political uncertainty.The Associated Press

The possibility of higher tax rates doesn't fully explain these trends. For companies that had surplus cash, it made sense to return some to shareholders. And even without a looming tax increase, the timing was right for investors to sell some stocks after a strong year on Wall Street.

But it's clear that the political climate -- the probability of higher taxes and the high level of uncertainty about the nation's fiscal path -- has influenced investors.

The Oregon Office of Economic Analysis projects that Oregon tax revenue from capital gains for tax year 2012 will increase 32 percent compared with 2011. Some of the projected increase, which will show up in future tax returns, can be attributed to the strong market. But a significant factor in the projection is the expectation that many individuals sold stock because of anticipated tax increases, said state economist Mark McMullen.

There are a number of ways to look at this phenomenon, but too much of the political discussion focuses on two competing points of view.

Viewed from the left, the investors' gains show how the economy is rigged for the wealthy, allowing those with money to cash in even when the economy struggles.

To a degree, both arguments are correct. So the real question is what economic policymakers should do because of these trends. Whatever they do, it's important to remember that the stock market and economy do not necessarily react to political and financial events in the same way.

This year's market gains in part reflect a relatively low starting point and the lack of other attractive investments options. As a result, stocks increased in value across the globe in countries with all types of governments and economies.

Quick question: Which country had the largest increase in the value of its benchmark stock index? Answer: Venezuela, with a nearly 300 percent increase. Greece, held up as an example of all manner of economic sins, saw its primary market index increase 32 percent. Those gains far outpaced the performance the primary U.S. indices -- plus 13.4 percent for the Standard & Poor's 500 and plus 7.3 percent for the Dow Jones industrial average -- as well as the 14 percent gain of Europe's benchmark Stoxx 600.

Don't expect too much stimulus from the market moves. If investors spend some of the money they reap from capital gains and dividends, their actions could provide some short-term economic boost. But the gains produced by this year's tax-motivated selling come at the expense of future years. You can't sell the same stock twice.

It's also unproductive to worry about whether investment gains are unfair because they widen the income gap. Simple math ensures that the income gap will grow under most circumstances. If someone with $1 million in income earns 10 percent more and someone with $10,000 earns 10 percent more, the gap increases from $990,000 to $1,089,900.

Instead of focusing on winners and losers, public officials in Salem and Washington, D.C., should concentrate on addressing problems that undermine the economy.

Investors, whether individuals or companies, need a more certain operating environment. Gov. John Kitzhaber correctly called a special session last month to provide tax certainty for Nike and other companies willing to make substantial financial investments in the state and create jobs. Other businesses also need predictable, understandable regulations and taxes.

Those on the lower end of the income scale need more opportunities. Improved schools, more financial aid for college and increased vocational training -- all proposals to be considered by the Legislature in 2013 -- will provide that.

Who knows where the stock market will finish in 2013.? But if the Legislature and Congress can provide more certainty and opportunity, it's a good bet that more Americans will have something to toast next New Year's Eve.